The Irish tax authority has officially entered the debate on US Foreign Account Tax Compliance Act (Fatca) with the US Treasury, according to a spokesperson for the Irish authority, joining a host of European countries in search of a common approach.
Full article: http://www.hfmweek.com/news/1712348/ireland-joins-eu-fatca-talks.thtml
The IRS is intent on harvesting the assets of countless so-called “US persons” living outside the US, including individuals who had no idea they were US citizens. Meanwhile, the same IRS assisted Google in income shifting that saved Google $3.1 billion in taxes over three years.
From the Bloomberg article (link below):
“After three years of negotiations, Google received approval from the IRS in 2006 for its transfer pricing arrangement, according to filings with the Securities and Exchange Commission.
“The IRS gave its consent in a secret pact known as an advanced pricing agreement. Google wouldn’t discuss the price set under the arrangement, which licensed the rights to its search and advertising technology and other intangible property for Europe, the Middle East and Africa to a unit called Google Ireland Holdings, according to a person familiar with the matter.”
Google was able to avoid taxes through a no-risk process supported by the IRS. Compare this with the December 2011 so-called amnesty for individuals, described by tax expert Kevyn Nightingale as ,”pay your money and take your chances.”
FATCA compliant foreign financial institutions (FFIs), including Canadian banks and investment houses, are required to close “recalictrant” accounts or collect 30 percent Withholdable Payments made to Recalcitrant Account Holders or noncompliant FFIs.
From the Globe & Mail: China cuts U.S. Treasury holdings:
Is China falling out of love with U.S. Treasuries?
(Note: you will need to scroll down to the section discussed here.)
